Awarener easy mode Awarener analytic mode

Fundamental analysis: CF Industries Holdings, Inc. (CF)

Awarener score: 7.8

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Very poor) and growth (Excellent), and the company's inclination to return cash to the stockholders (Very good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

  • Business has been growing at an excellent pace. It's been encouraging in relation to peer companies.
  • CF Industries Holdings, Inc. business varies frequently, ups and downs are normal. It's risky. It looks worse than most rivals.

Margins score: 7.8

  • CF profit margins -on goods and services sold- are usually hardly sufficient. They stand somewhat worse than rival companies.
  • Business profit on sales tends to be excellent. It's top tier when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain in good shape compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be very good in relation to total revenues. They're still well ranked against similar companies.
  • Profits -before income taxes- are usually very good considering total sales, and remain top tier when measured against rivals.
  • Total net profit tends to be very good when confronted to sales. Company stands more than average in relation to comparable firms.

Growth score: 9.7

  • CF Industries Holdings, Inc. profit -on goods and services sold- has been growing at an extremely fast pace. It's been a slight improvement compared to competitors.
  • In recent years, earnings -on operations- have been growing at an excellent step, which has been slightly better than comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at an excellent pace, which compares similar to peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at an extremely fast tempo. It turns to be rather normal in relation to similar stocks.
  • In past years, profits -before income taxes- grew at an extremely fast speed. It was somewhat better than rivals.
  • In the previous years, growth trend on total net profit has been extremely high, and similar to peer companies.
  • Earnings per share have grown at an extremely fast rhythm in past years. It's been rather normal in relation to industry peers.

Miscellaneous score: 8.0

  • CF managed to pay little to no income taxes on profits made in the past years. It's been top-notch against peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 9.0

  • CF Industries Holdings, Inc. usually gets excellent returns on the resources it controls. It proves encouraging in relation to peer firms.
  • The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain rather normal in relation to similar companies.
  • There's usually excellent profitability -in relation to owned resources-. It ranks more than average in relation to competitors.
  • In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's encouraging in relation to comparable enterprises.

Usage of Funds score: 6.2

  • CF usually uses a significant portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is abundant. It stands encouraging in relation to rival firms.
  • The company is usually replacing part of the property, plant, and equipment that gets old, keeping some funds for something else. It can't keep forever, which is weak when measured against industry peers.
  • In the past twelve months it paid somewhat low dividends, considering the current stock price. It came slightly worse than competitors.
  • In recent years, has slightly cut back dividend payments. The company has behaved in a weak position compared to similar firms.
  • Dividend payments usually represent a minor portion of genuine funds generation and are most likely safe. Sustainability looks better than most comparable companies.
  • The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains excellent in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in good shape compared to rivals.
  • The company uses a modest portion of genuine fund generation to reward investors, which can probably be sustained. It still looks more than average in relation to competitors.

Balance Sheet score: 6.4

  • CF Industries Holdings, Inc. intangible assets (like brands and goodwill) represent some portion of resources controlled, according to accounting books. There could be some difficulties in liquidating them if the company ever gets in financial distress. It happens to be almost average when measured against peer companies.
  • The company has more than enough short-term resources to face short-term obligations. Liquidity concerns are non-significant. It turns to be close to average when compared to similar firms.
  • Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains somewhat worse than rival firms.
  • Controlled resources might be turned into cash and equivalents neither fast nor too slow. Liquidity and risk might be run-of-the-mill. It looks weak when measured against rivals.
  • For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's a slight improvement compared to peer firms.
  • For every dollar of short-term obligations, the company has enough dollars in cash and equivalents, which is somewhat better than similar enterprises.
  • Usually, sales are on a month credit. It still ranks top tier when measured against peers.
  • Normally has approximately somewhat less than two months of sales worth in inventory. It comes up as excellent in relation to competitors.
  • On average, it takes less than three months from the purchase to charging customers. It happens to be top-notch against peers.
  • On average pays suppliers longer than two months after the purchase. It ranks weak when measured against industry peers.
  • The company pays its suppliers almost when charging its customers, so there's very little money invested in working capital. It's excellent in relation to similar companies.
  • Net interest expenses consume a significant portion of usual business earnings, but are mostly bearable. It stands mediocre against rival firms.
  • Business earnings have usually been very good when measured against loans taken. Cutting back reinvesting in the business, it could take less than two years to repay the obligations with current profitability. It ranks encouraging in relation to comparable enterprises.
  • Revenues are low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in a weak position compared to similar firms.
  • Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still somewhat better than peer companies.

Valuation score: 7.1

  • CF Industries Holdings, Inc. looks very cheap in relation to profits and financial position. It happens to be encouraging in relation to competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a very weak position compared to peers.
  • In the past twelve months, the company generated extraordinary free funds in relation to the stock price, which stands top-notch against similar companies.
  • The company usually generates much more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be very interesting. It's still top tier when measured against industry firms.
  • In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up close to average when compared to peer ventures.
  • The company has barely more debt than cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks slightly worse than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation looks cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be attractive. It ranks almost average when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a roughly two to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks rather normal in relation to rival firms.
  • The relation between the stock price and accounting book value is really high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains mediocre against peer firms.
  • In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be more than average in relation to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 7.5


CF logos

Company at a glance: CF Industries Holdings, Inc. (CF)

Sector, industry: Basic Materials, Agricultural Inputs

Market Cap: 18.69 billions

Revenues TTM: 10.16 billions

CF Industries Holdings, Inc. manufactures and sells hydrogen and nitrogen products for energy, fertilizer, emissions abatement, and other industrial activities worldwide. Its principal products include anhydrous ammonia, granular urea, urea ammonium nitrate, and ammonium nitrate products. The company also offers diesel exhaust fluid, urea liquor, nitric acid, and aqua ammonia products; and compound fertilizer products with nitrogen, phosphorus, and potassium. It primarily serves cooperatives, independent fertilizer distributors, traders, wholesalers, and industrial users. The company was founded in 1946 and is headquartered in Deerfield, Illinois.

Awarener score: 7.8

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Very poor) and growth (Excellent), and the company's inclination to return cash to the stockholders (Very good).